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BSP increase interest rates on savings products

Date: Tuesday 31st January, 2017

BANK South Pacific (BSP) announced it has increased the deposit interest rates on a number of its Savings Products.

In announcing this, BSP General Manager Retail Paul Thornton said that BSP actively encourages the development of a savings habit through our financial literacy program and we are backing this up with attractive interest rates that reward deposits for their savings.

"We have increased the interest paid on our Kids Account to a range from 1.5% to 2.00% pa. Previously the range was 0.2% to 0.4% pa. We have also increased the interest rates on our Plus Saver account to a maximum of 3.5% pa and have introduced the payment of interest on our Sumatin account where we now pay interest of 1.6%pa." Mr Thornton added, "These three savings products are also fee free and this together with the increased deposit interest rates are designed to encourage genuine savings by our customers."

"The interest rate on our Kundu Standard account, a transaction account designed for customer with infrequent transaction volumes, has been increased to 0.25% pa. The Kundu Standard account is a pay-as-you-use account and if a customer doesn't use the account during the month, no fees are charged," Mr Thornton said.

Mr Thornton also announced the reduction of the interest rate on BSP's Unsecured Personal Loan. The new interest rate is 29.9% pa. "The BSP Personal Loan is a 100% unsecured loan product with a maximum loan amount of K50,000. This product is available to customers with regular income".

Mr Thornton said that in relation to Financial Literacy training, BSP had trained more that 32,000 Papua New Guineans during 2016 with 46% of these being women. "BSP has over 120 trained trainers who deliver Banking Education to Papua New Guineans across the country and our intention is continue this vital service to encourage the presently unbanked to move from the cash economy into the formal financial system. At the same time, BSP has reintroduced School Banking at a number of locations to encourage our young Papua New Guineans to learn the benefits of saving."